- 1 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 26300 OF 2025 (GM-RES) BETWEEN: 1. ATANU DAS S/O SRI ANJAN DAS AGED ABOUT 53 YEARS RESIDING AT: SVS SPRINGS APARTMENT, FLAT NO. 306, KITHAGANUR MAIN ROAD, MARGONDANAHALLI, BENGALURU URBAN, KARNATAKA - 560036. 2. ARPITA DAS W/O ATANU DAS AGED ABOUT 50 YEARS RESIDING AT SVS SPRINGS APARTMENT, FLAT NO. 306, KITHAGANUR MAIN ROAD, MARGONDANAHALLI, BENGALURU URBAN, KARNATAKA - 560036. …PETITIONERS (BY SRI. SHRAYANSH SINGH.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 AND: 1. UNION OF INDIA REPRESENTED BY CHIEF SECRETARY, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110001. 2. THE MINISTRY OF FINANCE GOVERNMENT OF INDIA, REPRESENTED SECRETARY BY CHIEF NORTH BLOCK, NEW DELHI 110011. 3. RESERVE BANK OF INDIA ESTABLISHED UNDER RESERVE BANK OF INDIA ACT, THE REPRESENTED BY MANAGER HAVING ONE OF ITS OFFICES AT NRUPATHUNGA ROAD, BENGALURU 560001. 4. NATIONAL HOUSING BANK REPRESENTED BY MANAGER HAVING OFFICE AT CORE S-A, INDIA HABITAT CENTRE, LODHI ROAD, NEW DELHI - 110003. 5. TRANSUNION CIBIL LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 (NOW COMPANIES ACT, 2013) (FORMERLY CREDIT INFORMATION BUREAU (INDIA) LIMITED) - 3 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 REPRESENTED BY MANAGING DIRECTOR HAVING OFFICE AT ONE INDIABULLS CENTRE, TOWER 2A, 19TH FLOOR, SENAPAT BAPAT MARG, ELPHINSTONE ROAD, MUMBAI 400013. 6. IIFL HOME FINANCE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 (NOW COMPANIES ACT, 2013) REPRESENTED BY BRANCH MANAGER HAVING OFFICE AT NO. 9, GROUND FLOOR, VENKATASWAMY NAIDU STREET, TASKAR TOWN, SHIVAJINAGAR, 560051 BANGALORE. 7. SHASHWATI REALTY PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 (NOW COMPANIES ACT, 2013) REPRESENTED BY DIRECTOR(S) HAVING OFFICE AT NO. 19/1, 2ND FLOOR, DODDAMANE BUILDING, VITTAL MALLYA ROAD, BENGALURU URBAN, KARNATAKA 560001. …RESPONDENTS (BY SRI.H. SHANTHI BHUSHAN., DSGI FOR R1 AND R2) - 4 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO RESTRAINING THE R-6/FINANCIAL INSTITUTION FROM TAKING ANY PUNITIVE ACTION AGAINST THE PETITIOENR VIDE LOAN ACCOUNT NO IL10042674; DIRECTION TO THE R-6 FINANCIAL INSTITUTION TO RECOVER THE LOAN AMOUNT EMI AND THE INTEREST/PENALTY FORM THE R-7 IN TERMS OF THE TRI PARTITE AGREEMENT ANNX-E; DIRECT THE R-6 TO ASST THE R-5 TO RECTIFY THE CIBIL SCORE OF THE PETITIONER BY REMOVING THE OUTSTANDING AMOUNT VIDE LOAN ACC NO. IL10042674. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 5 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 ORAL ORDER The petitioners have admittedly entered into a certain tripartite agreement with Builders and Financial Institutions who are arrayed as respondents, and they seek directions as under: a. For restraining the sixth respondent [the financial institution] from taking any punitivie action against the petitioner vide loan account No. IL10042674; b. For direction to the sixth respondent [the financial institution] to recover the loan amount/EMI and the interests/penalty from the seventh respondent in terms of the Tri-Partite Agreement [ANNEXURE-E]; c. For direction to the sixth respondent to assist the fifth respondent to rectify the petitioners' CIBIL Score by removing the outstanding amount vide loan account No.IL10042674;" - 6 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 2. Sri Sharayansh Singh, the learned counsel for the petitioners, submits that the petitioners were induced to enter into a tripartite agreement with assurance of being given completed apartments in the project but today they are made victims because the Builders have abandoned the project and they have to face consequences of proceedings initiated by the Financial Institutions to recover the amounts due. 3. This Court is not inclined to interfere when it is admitted that the petitioners are parties to a tripartite agreement, and if consequentially proceedings are initiated, the petitioners must defend those proceedings on all grounds that could be available to them. This Court must also observe that the petitions of this nature are too frequent to be ignored and the Secretary, Ministry of Finance, Union of India, must take note of the same to see whether some regulations must be in place. While so - 7 - HC-KAR NC: 2025:KHC:37182 WP No. 26300 of 2025 observing and leaving open all contentions to the petitioners if there is occasion for the same, the petition stands disposed of calling upon Sri H Shanthi Bhushan, the learned Deputy Solicitor General, to forward a copy of this order to the Secretary, Minister of Finance for due consideration subject to all norms. Sd/- (B M SHYAM PRASAD) JUDGE SA ct:sr